þ
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Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended September 30, 2014
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or
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o
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Transition Period from to
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Atrion Corporation
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(Exact Name of Registrant as Specified in its Charter)
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Delaware
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63-0821819
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(State or Other Jurisdiction of Incorporation or Organization)
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(I.R.S. Employer Identification No.)
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One Allentown Parkway, Allen, Texas 75002
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(Address of Principal Executive Offices) (Zip Code)
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(972) 390-9800
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(Registrant’s Telephone Number, Including Area Code)
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Title of Each Class
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Number of Shares Outstanding at
October 15, 2014
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Common stock, Par Value $0.10 per share
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1,947,448
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Three Months Ended
September 30,
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Nine months Ended
September 30,
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2014
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2013
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2014
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2013
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(In thousands, except per share amounts)
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Revenues
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$ | 36,625 | $ | 34,044 | $ | 108,069 | $ | 100,142 | ||||||||
Cost of goods sold
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18,587 | 17,003 | 55,234 | 51,757 | ||||||||||||
Gross profit
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18,038 | 17,041 | 52,835 | 48,385 | ||||||||||||
Operating expenses:
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Selling
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1,440 | 1,530 | 4,642 | 4,596 | ||||||||||||
General and administrative
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4,151 | 3,651 | 12,465 | 10,952 | ||||||||||||
Research and development
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1,221 | 1,147 | 3,545 | 3,229 | ||||||||||||
6,812 | 6,328 | 20,652 | 18,777 | |||||||||||||
Operating income
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11,226 | 10,713 | 32,183 | 29,608 | ||||||||||||
Interest income
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240 | 310 | 904 | 1,005 | ||||||||||||
Other income, net
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12 | -- | 13 | -- | ||||||||||||
252 | 310 | 917 | 1,005 | |||||||||||||
Income before provision for income taxes
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11,478 | 11,023 | 33,100 | 30,613 | ||||||||||||
Provision for income taxes
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(3,793 | ) | (3,350 | ) | (11,332 | ) | (9,800 | ) | ||||||||
Net income
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$ | 7,685 | $ | 7,673 | $ | 21,768 | $ | 20,813 | ||||||||
Net income per basic share
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$ | 3.94 | $ | 3.82 | $ | 11.08 | $ | 10.33 | ||||||||
Weighted average basic shares outstanding
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1,949 | 2,007 | 1,964 | 2,014 | ||||||||||||
Net income per diluted share
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$ | 3.91 | $ | 3.81 | $ | 10.99 | $ | 10.31 | ||||||||
Weighted average diluted shares outstanding
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1,966 | 2,016 | 1,980 | 2,019 | ||||||||||||
Dividends per common share
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$ | 0.75 | $ | 0.64 | $ | 2.03 | $ | 1.76 |
September 30,
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December 31,
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|||||||
2014
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2013
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(in thousands) | ||||||||
Assets | ||||||||
Current assets:
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Cash and cash equivalents
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$ | 26,921 | $ | 28,559 | ||||
Short-term investments
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18,178 | 18,351 | ||||||
Accounts receivable
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18,399 | 14,164 | ||||||
Inventories
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28,408 | 26,266 | ||||||
Prepaid expenses and other current assets
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1,974 | 1,603 | ||||||
Deferred income taxes
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1,376 | 1,376 | ||||||
95,256 | 90,319 | |||||||
Long-term investments
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10,000 | 10,069 | ||||||
Property, plant and equipment
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138,426 | 130,504 | ||||||
Less accumulated depreciation and amortization
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77,980 | 72,176 | ||||||
60,446 | 58,328 | |||||||
Other assets and deferred charges:
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Patents
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2,606 | 2,808 | ||||||
Goodwill
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9,730 | 9,730 | ||||||
Other
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882 | 812 | ||||||
13,218 | 13,350 | |||||||
Total assets
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$ | 178,920 | $ | 172,066 | ||||
Liabilities and Stockholders’ Equity
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Current liabilities:
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Accounts payable and accrued liabilities
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$ | 9,891 | $ | 8,511 | ||||
Accrued income and other taxes
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890 | 853 | ||||||
10,781 | 9,364 | |||||||
Line of credit
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-- | -- | ||||||
Other non-current liabilities
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11,797 | 13,708 | ||||||
Stockholders’ equity:
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Common stock, par value $0.10 per share; authorized
10,000 shares, issued 3,420 shares
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342 | 342 | ||||||
Paid-in capital
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33,554 | 31,592 | ||||||
Retained earnings
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192,129 | 174,362 | ||||||
Treasury shares,1,473 at September 30, 2014 and 1,435
at December 31, 2013, at cost
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(69,683 | ) | (57,302 | ) | ||||
Total stockholders’ equity
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156,342 | 148,994 | ||||||
Total liabilities and stockholders’ equity
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$ | 178,920 | $ | 172,066 |
Nine months Ended
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September 30,
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2014
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2013
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Cash flows from operating activities:
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Net income
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$ | 21,768 | $ | 20,813 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization
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6,696 | 6,388 | ||||||
Deferred income taxes
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(1,463 | ) | (608 | ) | ||||
Stock-based compensation
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1,836 | 1,215 | ||||||
Net change in accrued interest, premiums, and discounts
on investments
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242 | 424 | ||||||
Other
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30 | 26 | ||||||
29,109 | 28,258 | |||||||
Changes in operating assets and liabilities:
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Accounts receivable
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(4,235 | ) | (3,129 | ) | ||||
Inventories
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(2,142 | ) | (2,709 | ) | ||||
Prepaid expenses
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(371 | ) | 1,518 | |||||
Other non-current assets
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(70 | ) | (17 | ) | ||||
Accounts payable and accrued liabilities
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1,380 | 2,525 | ||||||
Accrued income and other taxes
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37 | 1,172 | ||||||
Other non-current liabilities
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(448 | ) | (198 | ) | ||||
23,260 | 27,420 | |||||||
Cash flows from investing activities:
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Property, plant and equipment additions
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(8,641 | ) | (4,713 | ) | ||||
Purchase of investments
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(19,375 | ) | -- | |||||
Proceeds from maturities of investments
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19,375 | 7,639 | ||||||
(8,641 | ) | 2,926 | ||||||
Cash flows from financing activities:
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Shares tendered for employees’ withholding taxes on stock-based compensation | (377 | ) | -- | |||||
Tax benefit related to stock-based compensation
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160 | 6 | ||||||
Purchase of treasury stock
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(12,065 | ) | (4,086 | ) | ||||
Dividends paid
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(3,975 | ) | (3,541 | ) | ||||
(16,257 | ) | (7,621 | ) | |||||
Net change in cash and cash equivalents
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(1,638 | ) | 22,725 | |||||
Cash and cash equivalents at beginning of period
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28,559 | 7,999 | ||||||
Cash and cash equivalents at end of period
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$ | 26,921 | $ | 30,724 | ||||
Cash paid for:
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Income taxes
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$ | 13,393 | $ | 7,927 |
September 30,
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December 31,
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2014
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2013
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Raw materials
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$ | 12,314 | $ | 10,744 | ||||
Work in process
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7,097 | 6,246 | ||||||
Finished goods
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8,997 | 9,276 | ||||||
Total inventories
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$ | 28,408 | $ | 26,266 |
Three Months Ended September 30,
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Nine months Ended September 30,
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2014
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2013
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2014
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2013
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(in thousands, except per share amounts)
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Net income
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$ | 7,685 | $ | 7,673 | $ | 21,768 | $ | 20,813 | ||||||||
Weighted average basic shares outstanding
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1,949 | 2,007 | 1,964 | 2,014 | ||||||||||||
Add: Effect of dilutive securities
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17 | 9 | 16 | 5 | ||||||||||||
Weighted average diluted shares outstanding
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1,966 | 2,016 | 1,980 | 2,019 | ||||||||||||
Earnings per share:
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Basic
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$ | 3.94 | $ | 3.82 | $ | 11.08 | $ | 10.33 | ||||||||
Diluted
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$ | 3.91 | $ | 3.81 | $ | 10.99 | $ | 10.31 |
Gross Unrealized
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Cost
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Gains
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Losses
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Fair Value
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Short-term Investments:
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Corporate bonds
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$ | 18,178 | $ | 36 | $ | -- | $ | 18,214 | ||||||||
Long-term Investments
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Corporate bonds
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$ | 10,000 | $ | -- | $ | (6 | ) | $ | 9,994 |
● | Focusing on customer needs; | |
● | Expanding existing product lines and developing new products; | |
● | Manufacturing products to exacting quality standards; and | |
● | Preserving and fostering a collaborative and entrepreneurial culture. |
Three Months ended
September 30,
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2014
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2013
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Fluid Delivery
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$ | 14,839 | $ | 13,411 | ||||
Cardiovascular
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10,434 | 10,429 | ||||||
Ophthalmology
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5,560 | 5,127 | ||||||
Other
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5,792 | 5,077 | ||||||
Total
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$ | 36,625 | $ | 34,044 |
Nine months ended
September 30,
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2014
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2013
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Fluid Delivery
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$ | 44,808 | $ | 39,159 | ||||
Cardiovascular
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32,300 | 30,723 | ||||||
Ophthalmology
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15,850 | 15,939 | ||||||
Other
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15,111 | 14,321 | ||||||
Total
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$ | 108,069 | $ | 100,142 |
Period
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Total Number of Shares Purchased
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Average Price Paid per Share
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Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
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Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
(1)
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7/1/2014 through 7/31/2014
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- | - | - | 90,118 | ||||||||||||
8/1/2014 through 8/31/2014
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- | - | - | 90,118 | ||||||||||||
9/1/2014 through 9/30/2014
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1,492 | $ | 306.30 | 1,492 | 88,626 | |||||||||||
Total
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1,492 | $ | 306.30 | 1,492 | 88,626 |
(1)
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On August 16, 2011, our Board of Directors approved our current stock repurchase program pursuant to which we can repurchase up to 200,000 shares of our common stock from time to time in open market or privately-negotiated transactions. Our current stock repurchase program has no expiration date but may be terminated by our Board of Directors at any time.
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Exhibit No. | Description | |
10.1 | Amended and Restated Change in Control Agreement between Atrion Corporation and David A. Battat dated September 3, 2014 | |
31.1 | Sarbanes-Oxley Act Section 302 Certification of Chief Executive Officer | |
31.2 | Sarbanes-Oxley Act Section 302 Certification of Chief Financial Officer | |
32.1 | Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 of The Sarbanes – Oxley Act Of 2002 | |
32.2 | Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 of The Sarbanes – Oxley Act Of 2002 | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
Atrion Corporation
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(Registrant)
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Date: October 31, 2014
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By:
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/s/ David A. Battat | |
David A. Battat
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President and
Chief Executive Officer
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Date: October 31, 2014 |
By:
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/s/ Jeffery Strickland | |
Jeffery Strickland
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Vice President and
Chief Financial Officer
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(Principal Accounting andFinancial Officer)
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Exhibit No. | Description | |
10.1 | Amended and Restated Change in Control Agreement between Atrion Corporation and David A. Battat dated September 3, 2014 | |
31.1 | Sarbanes-Oxley Act Section 302 Certification of Chief Executive Officer | |
31.2 | Sarbanes-Oxley Act Section 302 Certification of Chief Financial Officer | |
32.1 | Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 of The Sarbanes – Oxley Act Of 2002 | |
32.2 | Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 of The Sarbanes – Oxley Act Of 2002 | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
To the Company: | Atrion Corporation | |
One Allentown Parkway | ||
Allen, Texas 75002 | ||
Attention: Chief Financial Officer | ||
To Executive: | David A. Battat | |
To the most recent address | ||
on file with the Company. | ||
ATRION CORPORATION
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By:
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/s/ Emile Battat | |
Its: | Chairman | ||
/s/ David Battat | |||
DAVID A. BATTAT
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Date: October 31, 2014
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/s/ David A. Battat
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David A. Battat
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President and
Chief Executive Officer
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Date: October 31, 2014
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/s/ Jeffery Strickland
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Jeffery Strickland
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Vice President and
Chief Financial Officer
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Date: October 31, 2014
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/s/ David A. Battat
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David A. Battat
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President and
Chief Executive Officer
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Date: October 31, 2014
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/s/ Jeffery Strickland
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Jeffery Strickland
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Vice President and
Chief Financial Officer
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